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The _____ States That a Country's "Nominal" Interest Rate Is

Question 51

Multiple Choice

The _____ states that a country's "nominal" interest rate is the sum of the required "real" rate of interest and the expected rate of inflation over the period for which the funds are to be lent.


A) PPP theory
B) efficient market theory
C) law of one price
D) Fisher effect

Correct Answer:

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